Discounters shouldn't pass up opportunities in the singles market - Merchandising Through The Ages: 25-44

Large numbers of American consumers are "buying for one" when they go shopping.

In a recent Impact Resources survey conducted for Deloitte & Touche of 86,000 shoppers across the United States, more than 43% indicated they are single. Of these, 25% fall into the category we typically think of when we hear the term "single,"--the younger, never-married person. But added to this group are the divorced and separated, 10.7% of the population, and the widowed, 7.6%.

In total, more than 49 million people over 25 years of age living in the United States fall into one of these three categories of "singles." According to American Demographics (April, 1992), the single population grew 85% between 1970 and 1990, while the married population grew only 19% during the same period. The number of divorced singles aged 25 to 44 rose from 1.8 million in 1970 to 8.1 million in 1990.

Single parents, who numbered 3.8 million in 1970, 13% of the total population, number 10.1 million in 1991, or 29% of the total, according to the U.S. Bureau of the Census.

Because no single definition fits all singles, retailers cannot use one marketing plan or merchandising strategy to target them.

As you might expect, the majority of the never-married group is young. Almost 80% of them are between 18 and 34 years old. One in five is a full-time student. Those who work are likely clustered at the lower ends of the income scale. Close to 60% earn between $10,000 and $39,999, with their average annual household income just topping $28,000.

Despite their relatively low income, however, singles are not afraid to spend. Perhaps because their overall living expenses are also lower, singles are less interested in price when shopping for shoes and clothes--both dress and casual--than the average consumer. Singles also show less interest in quality and service. Selection is their prime concern, whereas in the survey's total consumer group, price is the prime motivator. Single also have a stronger preference for familiar labels and are far more interested in the newest trends and styles.

Single consumers are much more likely than the average consumer to shop specialty apparel stores for dress and casual clothes, for both men and women. Their No. 1 source for such clothing, however, is the traditional department store. The discount store runs a slow third among singles purchasing both shoes and clothing.

Considering their economic status, one would think the discount store would be more popular with singles than it is. It's not that singles don't shop discounters at all. The survey shows that they are more likely to shop discounters than traditional department stores for TVs, VCRs, and stereo equipment. Perhaps the discounter has to find ways of getting the single shopper to other areas of the store.

It would be worth it to discounters to try. When asked what purchase intentions they had for the next year, singles outpaced the average consumer in every merchandise category. They have much stronger intentions than the general buying population to purchase a home computer, jewelry, watches, stereo equipment, TV and VCR.

How does the discount retailer market to a group that largely shops elsewhere? The first step is to learn more about them.

In terms of media habits, singles are more likely than the average consumer to watch cable television, particularly Cinemax, ESPN, HBO, and MTV. They are less likely to watch CNN. As for radio, singles listen an average of 30 minutes a day more than the average consumer. Few seem to even know they can dial in AM, as most listen to FM stations almost exclusively.

Singles spend less time than other consumers reading the newspaper, and when they do they turn to the local news, entertainment, and comics sections. About one in five singles reads most or all of the ad circulars, compared to about one in four average consumers.

Singles are far more likely than the average consumer to play sports and to exercise, ski, and attend concerts. They are into photography at a greater rate, and go to night clubs and amusement parks more frequently. And singles are more likely to have CD players, home computers, telephone answering machines, and cellular phones.

Just because they're not buying housewares, that doesn't mean there's little in the discount store for single consumers. Discounters sell much of what they buy and have a great opportunity to sell it to them.

  How Singles Differ From Total Population
                                  Singles   Total Population
Between Ages 25-34                34.6%          24.2%
White                             66.2%          74.4%
Black                             17.6%          12.3%
Shop Specialty Apparel
Store for Men's Wear              12.3%           7.8%
Shop Traditional Dept. Store
For Men's Wear                    15.5%          18.0%
Shop Discount Store for Men's      6.1%          10.8%
Shop Specialty Store
For Women's Casual Wear           10.9%           6.8%
Shop Traditional Dept. Store
For Women's Casual Wear           11.3%          16.2%
Shop Discount Store for Women's    3.3%           7.8%
Source: Impact Resources/Deloitte & Touche

Harvey D. Braun is a national partner and co-chairman of the TRADE/Retail & Distribution Services Group of Deloitte & Touche, the Big Six accounting and auditing, tax, and management consulting firm.

COPYRIGHT 1992 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2004 Gale Group